Dubai, UAE — Stock markets across the Gulf region ended the week with mixed results, as investors weighed local corporate earnings against rising global uncertainty ahead of key U.S.-China trade talks. The markets in Saudi Arabia, Dubai, Abu Dhabi, and Qatar showed varied movements, reflecting the complex dynamics shaping investor sentiment across the region.
While some sectors saw gains fueled by strong earnings reports, others were held back by concerns about geopolitical tensions and the potential impact of global economic policies.
Saudi Market Sees Modest Gains Backed by Banking Stocks
Saudi Arabia’s Tadawul All Share Index (TASI) closed slightly higher this week, supported mainly by the financial sector. Several leading banks reported better-than-expected quarterly earnings, giving investors some confidence in the face of external uncertainty.
Al Rajhi Bank and Saudi National Bank, two of the kingdom’s largest lenders, posted strong profits, driven by rising interest income and growth in retail loans. As a result, the banking index gained more than 1.5% during the week.
Energy-related stocks remained relatively flat, with oil prices fluctuating as markets anticipated developments in the upcoming U.S.-China trade discussions. Analysts noted that investor appetite in Saudi equities remained cautious but stable.
“There is clear buying interest in sectors showing profit resilience, like banking and telecom,” said a Riyadh-based market analyst. “However, broader sentiment is being capped by concerns over global trade disruptions.”
Dubai Market Dips Despite Strong Earnings in Real Estate
The Dubai Financial Market (DFM) fell slightly this week, as profit-taking weighed on several blue-chip stocks despite positive earnings reports from leading real estate firms.
Emaar Properties, one of Dubai’s largest developers, announced higher-than-expected quarterly profits, supported by strong demand in the residential and hospitality sectors. However, the company’s shares edged lower as investors locked in gains following recent rallies.
The banking and transport sectors saw minor declines, contributing to the overall dip in the index. Traders noted that many investors in Dubai remain focused on global signals, particularly ahead of the trade talks between the U.S. and China, which are expected to influence capital flows to emerging markets.
“Local fundamentals are solid, but short-term sentiment is being driven by external news,” said a UAE-based portfolio manager. “Many investors are taking a wait-and-see approach.”
Abu Dhabi Stocks Stay Flat as Energy Sector Faces Pressure
The Abu Dhabi Securities Exchange (ADX) ended the week largely unchanged, as mixed performance in key sectors balanced each other out.
Energy stocks, including ADNOC Distribution and TAQA, faced downward pressure due to oil market volatility. Crude prices have been swinging between gains and losses as investors digest inventory data and await policy signals from major economies.
Meanwhile, healthcare and logistics firms saw some modest gains, supported by positive earnings and ongoing demand in those sectors.
Abu Dhabi’s market has remained one of the region’s more stable performers in 2025, helped by government-backed investments and relatively low volatility in key sectors.
Qatar Market Sees Moderate Uptick on Banking and Telecom Strength
Qatar’s stock market posted modest gains during the week, supported by strength in the banking and telecommunications sectors. Qatar National Bank (QNB), the region’s largest lender, reported solid earnings growth, driven by increased lending activity and lower credit losses.
Telecom operator Ooredoo also contributed to market optimism, with its shares rising after announcing expansion plans in Asia and North Africa.
The Qatari market has shown resilience in recent months, benefiting from high natural gas prices and government infrastructure spending related to Vision 2030 development goals.
“Qatar’s diversified economic strategy is helping cushion market volatility,” said a Doha-based financial advisor. “Investors are showing growing confidence in large-cap names.”
Global Trade Talks Add to Market Uncertainty
Adding to the mixed performance in Gulf markets is the anticipation surrounding the upcoming trade talks between the United States and China. The meetings, scheduled for next week, are expected to address tariffs, supply chain concerns, and broader economic cooperation.
Markets in the Gulf are closely tied to global trade and commodity flows. Any positive or negative development in U.S.-China relations could ripple through oil prices, foreign investment flows, and overall investor confidence in emerging markets.
“Global events, especially U.S.-China negotiations, now play a bigger role in shaping short-term moves in the Gulf markets,” said a regional economist. “With so much interconnectedness, even indirect news can impact local investor behavior.”
Investor Sentiment: Cautious Optimism with Eyes on Earnings
Despite the external risks, many investors in the Gulf are staying cautiously optimistic, especially in sectors that have consistently delivered strong earnings. Local economies are showing steady growth, and government-led investment programs in infrastructure, technology, and tourism continue to support long-term prospects.
However, analysts warn that volatility may persist in the coming weeks, especially if global trade talks fail to ease tensions or if energy prices experience further swings.
“We are seeing selective buying in strong sectors, but broad market momentum is lacking,” said a trader in Kuwait. “Much will depend on the tone set by global policymakers.”
Conclusion: Mixed Signals, But Underlying Strength Remains
Gulf stock markets ended the week in different directions, shaped by a combination of local corporate performance and global economic concerns. While strong earnings in banking and telecom boosted investor confidence in some areas, broader concerns about international trade and oil prices continue to weigh on the region.
As markets look ahead to the outcome of the U.S.-China talks and more corporate earnings reports, investors in the Gulf will likely continue navigating a landscape filled with both opportunity and caution.
Stay tuned for weekly updates and expert analysis on Middle East market trends.
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